Are These Stocks Ready to Take Off?

Although the S&P 500 is off by 5 percent from its all-time high on May 22, the index is still up 12 percent for the year. Will the market resume its march to new highs?

The index recently broke below its 50-day moving average, which has served as a support level since December. In the past two days, however, it appears to be resuming its upward trend, with a gain of nearly 2 percent.

Investors betting on the market going higher may want to look at relative strength.

Relative strength is a quantitative measure that examines how a particular stock performs in relation to a group or industry. A company with high relative strength tends to outperform during bull markets.

A name making new 52-week highs, for example, may be seen as having above average "relative strength." The strategy assumes that these companies will continue to move higher as the market gains momentum.